Professionals in the construction sector and every-day Australians have a lot to lose from the proposed changes to negative gearing
Announcement posted by Australian Institute of Quantity Surveyors 24 Feb 2016
24/2/2016 - FOR IMMEDIATE RELEASE
Professionals in the construction sector and every-day Australians have a lot to lose from the proposed changes to negative gearing
With the federal budget set for release in May and the federal election set for the latter part of 2016, reducing the deficit is high on the agenda. With a raise in GST now off the agenda, proposed changes to tax depreciation schedules is currently being discussed in order to return to surplus.
With tax depreciation often forming a large part of those working in the built environment and associated industries such as Quantity Surveying, proposed changes in legislation could have a high impact on industry and every-day Australians including:
Every-day Australian’s will also be impacted by this change if implemented. Without investors being able to fund losses through negatively gearing their property, the average person may see a rise in rent; due to this increased cost no longer available to be offset through tax depreciation schedules.
The current Government is considering a cap on deductions, which will include deductions on rental properties. If the Coalition wins and deductions are capped (the plan is to cap work related deductions and rental property deductions to a percentage of the taxpayer’s income), then there will also be a reduction in the need for tax depreciation schedules.
If elected, Labor is promising to remove negative gearing from all purchased buildings (excluding new buildings) from 1 July 2017. Under the Labor model, if the interest costs, rates, management fees on the rental property washes out most or all the rent, a tax depreciation schedule is no longer required as deductions cannot go above rent - therefore it cannot be negatively geared.
AIQS will be actively lobbying and liaising with both parties, in order to highlight the impact these policy positions will have on the Quantity Surveying profession.
For more information, contact Lee Edmondson (AIQS Marketing & Communications Manager) on (02) 8234 4004 or ledmondson@aiqs.com.au.
The Australian Institute of Quantity Surveyors (AIQS)
The Australian Institute of Quantity Surveyors (AIQS) is the peak professional body for Quantity Surveying in Australia and Internationally, with over 4,000 Members. Through its leadership, Standards and Code of Professional Conduct, AIQS ensures that practising Quantity Surveyors are dedicated to maintaining the highest standards of professional excellence.
The Institute is a national organisation with Chapters and Divisions in all States and Territories. It also has a strong overseas membership and is the Australian peak body to the International Cost Engineering Council (ICEC) and the Pacific Association of Quantity Surveyors (PAQS).
A diverse range of professionals in the Building and Construction industry are part of the AIQS Institute, including high-level ‘decision makers’ at Director and Executive level, Business Owners and Managers, through to young cadets, students and graduates. Associated industries to Quantity Surveyors include; Cost Planners, Cost Estimators, Project Managers, Developers, Building and Professional Services.
The Australian Institute of Quantity Surveyors (AIQS)
Level 3, 70 Pitt St
Sydney, NSW 2000
Australia
(02) 8234 4000
www.aiqs.com.au
Professionals in the construction sector and every-day Australians have a lot to lose from the proposed changes to negative gearing
With the federal budget set for release in May and the federal election set for the latter part of 2016, reducing the deficit is high on the agenda. With a raise in GST now off the agenda, proposed changes to tax depreciation schedules is currently being discussed in order to return to surplus.
With tax depreciation often forming a large part of those working in the built environment and associated industries such as Quantity Surveying, proposed changes in legislation could have a high impact on industry and every-day Australians including:
- Construction Cost Managers;
- Building and Engineering Economists;
- Financial, Resource and Contractual Managers;
- Dispute Resolution Professionals;
- Quantification of Material and Labour Professionals; and
- Every-day Australian looking to invest or rent property.
"The building and construction sector is currently playing a big role in re-balancing the Australian economy due to the retraction currently being experienced in the mining sector. With demand in Asia slowing and the cost of oil, mining and gas at significant lows, the building and construction sector is currently helping to stabilise Australia’s economy."
Every-day Australian’s will also be impacted by this change if implemented. Without investors being able to fund losses through negatively gearing their property, the average person may see a rise in rent; due to this increased cost no longer available to be offset through tax depreciation schedules.
The current Government is considering a cap on deductions, which will include deductions on rental properties. If the Coalition wins and deductions are capped (the plan is to cap work related deductions and rental property deductions to a percentage of the taxpayer’s income), then there will also be a reduction in the need for tax depreciation schedules.
If elected, Labor is promising to remove negative gearing from all purchased buildings (excluding new buildings) from 1 July 2017. Under the Labor model, if the interest costs, rates, management fees on the rental property washes out most or all the rent, a tax depreciation schedule is no longer required as deductions cannot go above rent - therefore it cannot be negatively geared.
AIQS will be actively lobbying and liaising with both parties, in order to highlight the impact these policy positions will have on the Quantity Surveying profession.
For more information, contact Lee Edmondson (AIQS Marketing & Communications Manager) on (02) 8234 4004 or ledmondson@aiqs.com.au.
The Australian Institute of Quantity Surveyors (AIQS)
The Australian Institute of Quantity Surveyors (AIQS) is the peak professional body for Quantity Surveying in Australia and Internationally, with over 4,000 Members. Through its leadership, Standards and Code of Professional Conduct, AIQS ensures that practising Quantity Surveyors are dedicated to maintaining the highest standards of professional excellence.
The Institute is a national organisation with Chapters and Divisions in all States and Territories. It also has a strong overseas membership and is the Australian peak body to the International Cost Engineering Council (ICEC) and the Pacific Association of Quantity Surveyors (PAQS).
A diverse range of professionals in the Building and Construction industry are part of the AIQS Institute, including high-level ‘decision makers’ at Director and Executive level, Business Owners and Managers, through to young cadets, students and graduates. Associated industries to Quantity Surveyors include; Cost Planners, Cost Estimators, Project Managers, Developers, Building and Professional Services.
The Australian Institute of Quantity Surveyors (AIQS)
Level 3, 70 Pitt St
Sydney, NSW 2000
Australia
(02) 8234 4000
www.aiqs.com.au